Permanent TSB’s current account win

PERMANENT TSB says it has been the biggest beneficiary from the opening up of the current account market.

Irish Life & Permanent boss David Went yesterday said its banking subsidiary Permanent TSB had opened 5,000 new current accounts since the Irish Bankers’ Federation switching code came into effect last month.

Mr Went said these customers had switched from other banks and he expected more customers to sign up later this year.

“One of our priorities is to strengthen our position in current accounts.

“Balances in customers’ accounts rose by 19% on the year.

“We opened 35,000 new loyalty current accounts and grew our market share by four percentage points to 12%.”

Permanent TSB is leading the charge to sign up disaffected customers from its rivals.

It has scrapped all fees and charges on its current accounts in a bid to grow market share. Mr Went said he hoped the bank would sign up 60,000 current account customers this year.

“The competitive pitch for current accounts has change dramatically now since the introduction of the banking federation’s switching code, which has made it easier. We’ve certainly set out to capitalise on that opportunity more aggressively than our competitors.

“Despite some problem in the switching process, the evidence from the opening weeks of the campaign is certainly encouraging.”

He said Permanent TSB plans to launch a new credit card in the next few weeks with the lowest APR rate in the Irish market.

“We expect this card to contribute further to customers’ acquisition.”

Mr Went said he was also pleased by an increase in Personal Retirement Savings Accounts sales.